Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, when his Department plans to publish a response to the Developing the UK Emissions Trading Scheme consultation, published 25 March 2022; and whether he plans to take steps to help ensure the international competitiveness of UK manufacturers at risk of carbon leakage.

Industrial participants in the UK ETS are provided with free allocations, reducing their exposure to the carbon price and mitigating the risk of carbon leakage. In a recent consultation the Government guaranteed free allocations at current levels until 2026, and as part of an ongoing review is looking at how to target support to sectors most at risk of carbon leakage. The UK ETS Authority will publish a response to the March 2022 consultation in due course.

The Government is also consulting on wider carbon leakage mitigations such as a carbon border adjustment mechanism and mandatory product standards.